Welcome to ASEAN! My name is Kevin Lee, and I am one of your co-chairs forthis committee. As a Senior who has been doing this for the majority of my high schoolcareer, I hope you all come to appreciate thecreativity, intellect, and fun that I’ve cometo associate with MUN. This is my first time chairing a committee, so in a way, I will justbe as nervous and anxious as some of you will be. One thing I want to stress is thateverybody, both veterans and novices, should embrace the experiences that Model UnitedNations has to offer. I encourage you to step outside your comfort zone because I promiseit gets easier. I sincerely look forward to meeting each and every one of you!

My name is Angel Ding, and I am your other co-chair for this committee. I amcurrently a junior, and it is my first year participating in MUN. Though this has been myfirst year, I have really enjoyed the opportunities it has given me to discuss excitinginternational issues and work together with my peers to create possible resolutions. As anew MUN participant, I know how intimidating it is at first to speak in front of everyone,but being able to convey your opinions and suggestions is really one of the mostrewarding parts of this experience. Therefore, I urge you to really try your hardest to getoutside of your comfort zone and contribute your ideas--it will be more fun that way!

We both look forward to what will surely be a stimulating and fun evening!ASEAN will be debating the struggle for human rights and democracy in Burma(Myanmar), as well as the attempt by ASEAN to create an economic union between itsmembers. We strongly urge you to read the background guide thoroughly and also utilizeyour own research as much as possible. You will need to write one position paper foreach topic to help you understand the stance of your country

(and to get credit forattendance as well as eligibility for awards).The standard position paper typically hasthree paragraphs. The first paragraph should contain the legal basis of the issue. Thesecond paragraph should have what your country is currently doing about that issue. Thethird paragraph is the most important, because this is where you state what your countryintends to do about the issue.For reference,asample position paper is posted on theHMUNC website. If you have any questions on how to write one, you can always emailus! Position papers are not only a way to research background information but also a wayto solidify your position before committee.

We encourage all our delegates to be respectful, engaging, and professional.Although we understand that ASEAN does not typically take action regarding issues inthe region, we encourage you to push the boundaries of what ASEAN would normally do.We

encourage you all to be brave, creative, and most importantly, have fun. We lookforward to seeing you all there!

From your Co-Chairs,

Angel Ding and Kevin Lee

4

Position List

Member States

Vietnam

Thailand

Singapore

Philippines

Myanmar

Malaysia

Lao PDR

Indonesia

Cambodia

Brunei Darussalam

Observer Nations

USA

United Kingdom

South Korea

Germany

Japan

France

China

Spain

Australia

East Timor

New Zealand

Papua New Guinea

India

Bangladesh

Pakistan

Canada

Russia

5

Association of Southeast Asian Nations (ASEAN)

Motto: “One Vision, One Identity, OneCommunity”

ASEAN Region

What is ASEAN?

ASEAN (Association of Southeast Asian Nations) is a political, geographic,

andeconomic organization of ten

countries in Southeast Asia. ASEAN was first created as ameans of promoting economic development, regional security, and cultural developmentamong its members. Similar to other blocs in the world such as the European Union andtheNorth Atlantic Treaty Organization (NATO),

ASEAN hopes that individual countriescan benefit through unity.

How was it founded?

On August 8, 1967, ASEAN was established under the ASEAN Declaration (alsocalledthe Bangkok Declaration)

by the five founding Southeast Asian nations (Indonesia,

6

Malaysia, the Philippines, Singapore, and Thailand) at a summit in Bangkok, Thailand.There,

they pledged to join together to promote a peaceful, prosperous regionalcommunity that would aid each other in setting up economic progress, social growth, andcultural development. The other five

countries (Brunei, Vietnam, Laos, Papua NewGuinea, and Burma) joined the union in the years following, making upthe currenttenmember states. In 1976, the member states signed the Treaty of Amity and Cooperationin Southeast Asia (TAC), in which member states promised not to interfere in the internalaffairsor threaten the independence of the other states. This was given the name “TheASEAN Way.” However, the most important development came on ASEAN’s 30thanniversary, when leaders created the ASEAN Vision 2020, where they created thecommon goal-

the economic community. The regional union

was further cemented bythe official creation of ASEAN’s charter, which gave member states their rights andestablished the ASEAN regional body’s structure.

The ASEAN Logo: Each stalk represents a different country, and the colors

symbolize

Peace and Unity

How does ASEAN work?

One of their most important discussion topics so far hasbeen the creation of a unifiedASEAN community,particularly

the integration of the regional bloc

into the ASEANEconomic Community. ASEAN meets twice

every year in order to discuss importantregional issues. ASEAN does not have the power to set up sanctions

or to force a countryto adopt a regionwide procedure. Instead, it is more of a diplomatic forum that facilitates

7

talks between countries oncross-border issues and regional problems such

as migration,drug trafficking, and piracy.

Together, the countries can suggest region wide collectiveactions, but in reality, ASEAN’s powers are restricted. As a result, it will be up to you, asdelegates, to either suggest (everyone) or vote (only ASEAN nations) to increaseASEAN’s power to enforce the suggestions within your proposals.

All countries will have the power to offer suggestions, persuade the ASEAN nations, andpropose support for other ideas, but only ASEAN nations will be able to vote on whetherto implement it region wide or individually.

How will you debate this?

The ASEAN committee will debate information with regular parliamentary procedure.What that entails is this:

1.

Committee starts with anagenda debate. This means that you use “motions” tosuggest topics for discussion. People will be able to speak about what they wantto focus on during debate, and afterwards everyone will be able to vote on whichtopic to choose.

2.

After deciding on a topic as a committee, we start general debate in the form of a“speakers’

list”

(a set list where speakers sign up to talk about their views on thetopic for a specific amount of time and go in order) or a“moderated caucus,”

8

(free forum where anyone can talk, and theorder of the speakers is not set and thespeaking time is shorter).

3.

Often, after debating for a while, people can motion for an“unmoderatedcaucus,” (where delegates can talk to other nations to find out more about theirviews and collaborate on suggestions. This comes in the form of documents called“working papers,”

where your suggestions will be written down in a specificformat (shown in the delegate guide).

4.

When people feel like they have finished debating a topic, they can move on bymotioning to move tovoting procedure. Here, only ASEAN nations will be ableto officially vote to implement measures specified in the various working papers.Afterwards, delegates can motion to start the next topic.

9

Topic 1:How to facilitateHuman Rights and Democracy in Burma/Myanmar

Country Profile:1

Population: 55,167,330 (2013 est.)

Capital City: Nay Pyi Taw

Major Languages: Burmese, various ethnic languages

Major religions: Buddhism, Christianity, Islam,

Unit of Currency: Kyat

MainExports: Prawns, Fish, Oil & Gas, Beans, Timber

Overview

After being a province of Britain throughout the 19th century and being occupiedby Japan during the onset of World War II, Burma became independent in 1948.However, a military coup in 1962 led toalmost 50 years of existence as an isolated state,with theJunta

These human rights violations consistedof many actions that broke the terms and rights outlined in the Universal Declaration ofHuman Rights. The Universal Declaration of Human Rights

1BBC. "Burma Profile."BBC. BBC, 14 Dec. 2011. Web. 3 May 2013.

<http://www.bbc.co.uk/news/world-asia-pacific-12990565>.

2

BBC. "Burma Overview."BBC. BBC, 2 Apr. 2013. Web. 3 May 2013.

<http://www.bbc.co.uk/news/world-asia-pacific-12990563>.

10

(http://www.ohchr.org/EN/UDHR/Documents/UDHR_Translations/eng.pdf) lists basicfreedoms and ethical values that all human beings are entitled to. The violationscommitted by the Junta include repressingbasic political freedoms, cracking down oncivilians, and forcing child labor. In recent years, however, democratic progress has beenmade in Burma. The Junta relinquished control in 2011 to a civilian government. Thecurrent president,Thein Sein,

has made several leaps toward change, earning Burma newformal international relations, foreign aid, and formal recognition for the newgovernment from countries such as the United States and organizations such as ASEAN(which Burma joined in 1997). Although Burma has made significant progress socially,economically, and politically and has been recognized by the international community,there is still a long journey ahead.

Key Terms

Socialism:A political and economic policy in which the government is in charge of themeans of production, which means that all industry is nationalized (publicly owned).

Burmisation:ethnic

cleansing

Imperialism:When countries extend power and influence through both political andmilitary means (colonization)

Burmese Way to Socialism:

-nationalizes the economy

-forms a single party state under the Socialist Program Party

-bans independentnewspapers, starts government censorship

Sanctions:An action (usually in the form of penalties and fines) taken by theinternational community to condemn a nation. They provide incentive for a country toobey international laws. (e.g.: economic sanctionscould prevent trade with a certainnation.)

8888 Uprising:

An outbreak of protests and demonstrations across Burma in response tothe growing tyranny of the junta.

Junta:

A military group that controls a government through force

Dissident:

a person who is

opposed to a governmental policy

Coup

d’etat:

A military takeover of the government

11

Basic Political freedoms:natural rights granted to every human (ex. the right to vote, theright to free speech, the right to assemble, etc.)

Key People/Groups

General

Aung San: Aung Sang was a nationalist who fought for independence fromJapan. He was later assassinated in 1947. Aung Sang is generally considered the founderof modern Burma.

AFPFL: Anti Fascist People’s Freedom League: a national communist party that firstgoverned Burma.

General Ne Win: Led a military coup in 1962 and took control of Burma. Heimplemented the Burmese Way to Socialism. He founded the Burma SocialistProgramme Party and ruled for 26 years.

Aung San Suu Kyi:

The daughter of General Aung San, she is the leader of the NationalLeague for Democracy, firmly in opposition to the military junta in Burma. She wasplaced under house arrest by the military in 1989, and became a world famous politicalprisoner. She earned the Nobel Peace Prize. She was released from house arrest in 2010and has since been elected to the reformed parliament.

Aung San Suu Kyi, longtime political prisoner and advocate for democracy in Burma

National League for Democracy:A Burmese political party that dominated theparliamentary election in 1990 but was never recognized by the Junta. The chairperson,

12

Aung San Suu Kyi, was placed under house arrest by the Junta. The party won manyseats in the 2012 election. The NLD advocates democracyand human rights.

Rakhine:

a nationality in Burma consisting of 5.53% of the population. GenerallyBuddhist.

Rohingya:

a group of about 800,000 Muslims, forming one of the most persecutedminorities in the world. The junta caused many of the Rohingya to flee Burma.

Thein Sein:The current president of Burma, sworn into office in 2011 after the Juntarelinquished control. He used to be a general under the Junta but was always consideredto be a reformist. Started democratization in Burma by releasing political prisoners,allowing labor unions, allowing peaceful protests, allowing freedom of the press, andtrying to resolve ethnic tensions between the Rakhine and the Rohingya.3

leads a military coup to overthrow UNu’s party. He abolishes the federal system and initiateshis program, the “Burmese Way to Socialism”. Thiscombined Soviet central planning and the government’sown superstitious beliefs.

1974

The constitution of the

Socialist Republic of the Union ofBurma is adopted. Burma is being ruled under a one partysystem under theBurma Socialist Program Party.During this period of time, Burma becomes one of themost impoverished countries in the world.

1975

Student protests in Rangoon University were broken upwith crushing military force

1988

The8888 Uprising

breaks out across Burma started bycollege students. Marches, demonstrations, and protestslead to thousands of civilian deaths by military forces.

1989

Aung San Suu Kyiis placed under house arrest by themilitary. She will remain there for the next 21 years.

1989

After thousands of people are killed in governmentprotests, the

State Law and Order Restoration Council

is formed. This council declares martial law and arreststhousands. They also rename the country “Burma” into“Myanmar”

1997

Burma is admitted toASEAN. The State Law and OrderRestoration Council is renamed into theState Peace andDevelopment Council

2001

The military andShan rebels

fight along the Burmeseborder

2003

New Prime MinisterKhin Nyuntbegins drafting a new“roadmap to democracy”

2007

Anti government protests continue, especially byBuddhist monks. The military rounds up thousands ofmonks, as well as cracksdown on protesters.

2008

The Cyclone Nargis hits Burma, killing over a hundredthousand. The government is accused of blocking foreignhumanitarian aid.

14

2010

The Junta changes the country’s name, flag, and nationalanthem back to the original

2010

First elections in nearly 20 years, the Junta claims thatthis marks the transition from military to civiliangovernment.

Aung San is released from house arrest.

2011

President Thein Sein is sworn in, promising reforms. Hedelivers many sweepingchanges in the years to come.

From the very beginning of its time as an independent nation, Burma hasexperienced widespread political turmoil in the form of various coups led by oppressiveregimes and dictators. These political systems have deniedbasic political freedoms

formillions of Burmese citizens. From its large amount of corruption to its rejection of freespeech and expression, the Burmese government has completely withheld rights in effortsto eliminatedissidentsand remain in power.

A government worker’s marks on Burmese newspaper, denoting what is acceptable to publish and what isn’t.

General Ne Win’s coup of 1962 marked the beginning of almost three decades ofgovernment censorship, persecution, and brutality.5

As the citizens were restricted by theregime’s extreme laws, discontent grew along with the economic downturn caused by thesocialist plans. These tensions finally came to a breaking point in 1988, when the8888Uprising

occurred, and the resulting military action caused some of the most severe actsof oppression committed by a government. Over 3,000 protesters, mainly monks andstudents, were gunned downin the streets of the capitol, as the military overthrew the

were arrested and detained. In 1990, electionswere held, and by an 82 percent majority,Aung San Suu Kyi’s party, the NationalLeague for Democracy (NLD), won in a landslide. However, the military junta refused toacknowledge the victory and instead drove all elected NLD officials out of the country orjailed them. The regime remained in power and suppressed all attempts of reform. Thegovernment randomly would be able to perform unreasonable searches and seizures andmonitor all telephone and internet activity to search for any sign of dissent. From theyears of 1989 to 2004, more than 1,300 political prisoners were convicted and arrestedunder corrupt, unfair trials for using means of peaceful protest against the governmentactions.7

While in jail, many were subjected to torture and cruel, neglectful treatment thatled to numerous people dying. As of 2012, there are still 311 political prisoners beingheld in jails unfairly.8

In 2008, a new constitution was passed, but numeroushumanitarian groups claimed that the ratification process was completely rigged. It alsoattempted todisenfranchise (deny voting rights) to certain groups by providing astipulation that those in certain religious and ethnic groups, as well as those considered“destitute,” were prohibited from voting.9

These fixed elections continued even in 2010,when a new parliament was established, but the elections resulted in the military regime’sfavored parties winning numerous spots, exhibiting obvious signs of election fraud.

The government also censors themedia from news to forms of art such asliterature and film. Media censorship includes government criticism, bad news, domesticissues, and international conflicts. Furthermore, the government has an official bodydedicated to censorship, the Press Scrutiny and Registration Division that still existstoday.10

The government controls all publications and broadcasts, only reporting on theactions and new programs of the military and generals.

Social Issues:

●

Ethnic & religious tensions:

In a country with a population upwards of 55 million,there are over 150 ethnic groups, with almost 90 percent of the population beingBuddhist.11

However, many of these small ethnic groups follow differentreligions, such as Islam, Christianity, and Hinduism. The majority of these groupshave entered into conflict with the Burmese government in efforts to gainindependence or because of religious tensions after Buddhism was declared the

"Amnesty International Calls on Authorities in Myanmar to Release All Prisoner of Conscience."Amnesty International | Working to Protect Human Rights. Amnesty International, 16 Nov. 2004. Web. 10Apr. 2013.

state religion. Tensions have also resulted because of the exploitation anddiscrimination of ethnic minorities at the hands of the indigenous Burman(Bamar) population, which forms the majority 68 percent of the population andcontrols the government.12

They have been forced into labor, treated as lowerclass, deprived of their right to vote, and have been victims of crop destructionthat often displaces them.13

○

TheRohingya

Muslims14

are perhaps one of the biggest examples ofgovernment persecution in Burma. In 1982, a citizenship law was passed,revoking their citizen status. As a result, because they are technically“state-less,” and they are not bound by the same laws as other citizens areand are therefore prime targets for labor exploitation at the hands of thegovernment. After the regime took power, hundreds of thousands havebecome refugees and escaped to neighboring countries. In recent months,previously dormant tensions have broken out among the Rohingya and theRakhine Buddhists in the Arakan state in Northern Burma.15

The RakhineBuddhists, as the primary aggressors, launched a massive movement forethnic cleansing, in order to remove the Rohingya. They burned homesand mosques, destroyed villages, and drove Rohingya families out.16

Though some Rohingya groups formed to fight back, they were extremelyoutnumbered andoften did not make much of an impact. As a result,thousands of Rohingya have had to flee to UN refugee camps and haveattempted to gain entrance to other countries. However, they have oftenbeen denied entry and sent back. This conflict has quickly evolved intoone of the worst humanitarian crises, yet the government is doing little tostop it.

○

TheShan

are a Buddhist group found in Northeastern Burma and form thesecond largest ethnic group (9 percent of population). They originallyjoined Burma with thepromise that they would receive some measure ofself-rule. However, this never occurred, and as a result, several resistancegroups formed to fight for independence. The government has conductedseveral army raids on Shan villages and has forcibly driven groups of Shanout of their villages in recent years.17

are a Christian group living within the mountains near theborder between India and Burma. They have formed insurgency groups tofight against the ruling regime, who they argue discriminate against thembecause of their race. Many have escaped to the neighboring India but arealmost always sent back to their tormentors.

○

TheKaren

people form another group fighting for their independencefrom the junta. They form the third largest ethnic group within Burma andhave a mixture of both Christians and Buddhists.18

Occasional skirmishesstill happen against the junta, but internal conflict has also torn them apart.They live on the border between Thailand and Burma and have beenexploited through forced labor and relocation at the hands of thegovernment.

○

TheKachin

also live in northern Burma, where they, after fighting adecades long war for independence, have signed a ceasefire agreement in1994. Because of its proximity to the Chinese border, they are oftenexploited by the government and sold into human trafficking or labormarkets.19

●

Women and Children:Burmese women and children living in ethnic territoriesare often forced to work in harsh labor and military projects.20

During militaryoffensives by the military against rebels, women and children are often forced tocarry supplies through the front lines. Many women end up being raped bysoldiers, while even more children are forced to become child soldiers. Burmasuffers the world’s highest numberof child soldiers and forced laborers. Evenwomen and children outside these ethnic cities suffer insufficient medical andsocial attention. Just as important is the high dropout rate in many schoolsbecause of high schooling expenses, prompting children to forgo education infavor of child labor.21

Lack of healthcare availability:Burma currently has the world’s second worsthealthcare system. Because its economy has been so devastated by themismanagement of resources, socialization, and a lack of government funding,healthcare quality is horrible. For diseases, there is little treatment or none at all.More than 25 percent of the population lacks access to safe drinking water, and ontop of that, there is no treatment for diseases that arise like malaria. The epidemicof HIV/AIDS is also going untreated, as only a miniscule two percent of Burma’sGDP is even going towards healthcare overall.22

Questions To Consider

●

How can ASEAN intervene to improve human rights in Burma?

●

What economic assistance can ASEAN lend to improve infrastructure anddevelopment?

●

What actions can ASEAN recommend to the UN in regards to Burma’sdemocratization?

●

Should ASEAN countries continue to hold their non-interference policies?

●

To what extent shouldforeign intervention be necessary in the Burma reformprocess (intervening in elections, ethnic conflicts, legal system, etc.)?

Bloc Positions:

ASEAN:

ASEAN has generally practiced a non-interventionist policy against theproblems and tensions found in Burma, as they have not wanted to threaten relations withBurma, which containsabundant resources. However, the international community hasfrowned upon

ASEAN’s “soft” approach to the ongoing conflict and has condemnedASEAN’s lack of action. Therefore, we encourage you to step outside of their inactiveroles! How canyou

Each country has its own unique relationship with the US and with Burma. Please lookinto them!

European Union/USA:

The European Union is a strong supporter of democracy andhuman rights. The approach of the European Union is two pronged: heavy sanctions onthe oppressive Burmese government

and abundant humanitarian aid to the needypopulation. These sanctions are known as “targeted sanctions,”

which means they areaimed at specific leaders of the military as well as specific industries. The EU supportsrecent democratic developments by Burma

and has begun the processof trading andinvestment with the country, as well as lifting sanctions. The United States mainlysupports the ideologies of the EU. Obama has commended the recent reforms

and hasfunneled American foreign aid to help develop Burma. Countries in this bloc

shouldfocus on how to balance harsh economic

sanctions with

supporting the new democraticreforms that Burma has

enacted. You should decide on the “carrot or stick” approach inreforming Burma.

China:

Historically, China has been one of Burma’s strongest allies. Between them, theyhave signed a treaty of peace and non-aggression in

the late 1950s, and since thentheyhave signed numerous trade agreements. When Burma’s military regime

took over, Chinawas one of the only countriesit

sought open relations with, and as a result, China’spolicies have been a major influence in the development of the country in recent decades.Trade between the two countries is mutually beneficial, as the largest industries

withineach trade extensively, amounting to almost two

billion dollars. The Chinese governmentalso supplies Burma with its largest source of foreign military funding and advice. In theearlier part of the 2000s, China also opposed UN resolutions to intervene and enforceharshersanctions. However, with this in mind, they have also been less and less willingto support Burmese action

and look to stabilize the government. Burma, on the otherhand, has looked to become

less and less dependent on China

and has started to trademore with Japan, India, and other ASEAN nations.

Russia:

Russia has also long been another large supporter of Burma. Even today, Russiarejects UN resolutions to enforce harshersanctions on Burma

and instead would ratherresort to diplomatic talks, especially to protect its own interests (their trade and

diplomatic

relations with Burma).

Topic 2:How to Establish the ASEAN Economic Community

20

The Idealistic Goal for the ASEAN: Unity

Key Terms:

ASEAN Economic Community (AEC):The collective name for a cohesive integratedeconomy of ASEAN members

Trade integration:

The process of increasing a country’s participation in global trade.

Capital:

Wealth owned in form of money or assets

Investment integration:

The process of increasing a country’s foreign investment

Service sector:

The sector of the economy that is neither manufacturing nor agricultural(such as restaurants)

AFTA (ASEAN Free Trade Area):

An ASEAN trade bloc that supports localmanufacturing

Uniform tariff:

Standardizing different tariffs (taxes on imports)

Market economy:

Economy where decisions are made through the state of the market(laissez fair) and not a centralized authority such as the government

Command economy:

An economy with heavy government regulations, the opposite of amarket economy

Custom union:

A trade bloc that promotes free trade with external tariffs.

Regionalism:The practice of regional systems of economic, political, or socialconstructs rather than national ones. ASEAN is an example of regionalism

Foreign direct investment (FDI):

Investing in foreign countries’ businesses

Autocracy:

a system of governmentwith one person in total power

HDI:

Otherwise known as the Human

Development Index,measures a countries level ofdevelopment by their education, life expectancy, and income.

GDP per capita:

A measure the economic output of a country per person, which alsoprovides a measure of a country’s wealth

Emerging economy: A developing country that is growing and industrializing rapidly.

Overview ofASEAN and the Economic Community

21

The Association of Southeastern Asian Nations is an organization of ten countriesthat share geopolitical and economic ties. They aim to foster cultural development,promote economic growth, and create diplomatic ways to solve regional disputes. One ofits largest aims is to establish a unified economic community that can provide a flexibleway for the Southeast Asian countries to meet the rapid developments of today's globaleconomy. In 1997, ASEAN met and adopted the ASEAN

Vision 2020, where the nationscommitted themselves to creating a “stable, prosperous, and highly competitive ASEANeconomic region in which there is a free flow of goods, services, investments, and freerflow ofcapital, equal economic development, and reduced poverty and socioeconomicdifferences” before 2020.23

In 2003, ASEAN countries’ leaders met again and signed theBali Concord II, which established their goal to create an economic community by2015.24

They met again in 2007 after another summit of leaders, which resulted in theASEAN Economic Community Blueprint, a set of clearly outlined goals and theirdeadlines, which would act as their steps to creating the economic community. Thiseconomic community has been their most important project, and is a

highly ambitiousone. There is still much left to be done, and there are many steps that still need to betaken to fully integrate all of the different economies found in ASEAN’s member states.

Thailand is a constitutional monarchy as well as a newly industrialized country.As one of Asia’s emerging economies, Thailand is one of ASEAN’s strongest economies.Some of its main industries are fishing, agriculture, and manufacturing. It is ranked 86th

in the world forGDP per capita, and is the 2nd largest economy in Southeast Asia. Itslargest trading interests lie within China, Japan, Malaysia, and the US.

Burma/Myanmar:

Burma has experienced significant political and economic turmoilover the year and therefore is one of the poorest countries in the world. However, theeconomy is slowly developing. Burma has plenty of oil and gas, and the illegal globaldrug trade benefits Burma’s economy. Burma is the largest producer ofmethamphetamines (crystal meth) in the world. Burma is ranked 174th in the world forGDP per capita. China, Singapore, Thailand, and Japan are its largest trading partners.

Indonesia:Indonesia has thelargest economy in Southeast Asia. It is ranked 117th in theworld for GDP per capita. Indonesia experienced setbacks in the recent financial crisis,and although it has seen some economic growth, approximately 13 percent of itspopulation lives below thepoverty line. Its developed industries such as hotels,hydrocarbon mining, and oil and gas resources help make Indonesia one of the richercountries in the ASEAN organization.Its biggest trade partners lie within the Asiaregion, with China, Singapore, Japan, South Korea, and

Malaysia.

Vietnam: Vietnam is one of the poorer nations within ASEAN.As a fast

growingeconomy, Vietnam relies on industries such as tourism and energy to fuel it’s economy.Vietnam trades heavily with it’s ASEAN partners.

23

Brunei:

Brunei relies on exports of crude oil and natural gases for its governmentregulated economy. Brunei has the 4th largest liquefied gas production in the world, aswell as the 3rd highest oil production in Southeast Asia. Brunei has the 6th highest GDPpercapita in the world.Japan, Australia, and Indonesia are its biggest export partners, itimports mainly from Singapore,

Malaysia, and Germany, and South Korea, India, and China are its biggest trade partnersoverall.

Malaysia:This market economy has thethird largest economy in Southeast Asia.Malaysia’s main industries are oil, technology, and financing. Malaysia has the 57thhighest GDP per capita in the world.China, Singapore, Japan, US, Indonesia, andThailand are its main trading partners.

Philippines:This newly industrialized nation has an emerging economy. Some of itslargest industries include electronics assembly, garments, and fruit exports. ThePhilippines has the 121st highest GDP per capita in the world. Its predominant tradingpartners are

the US, China, and Japan, but it also trades largely with its ASEANneighbors:Singapore, Thailand, Indonesia, and Malaysia.

Cambodia:Cambodia has a market economy that has seen significant progress in the pastfew years. With important industries suchas garments, tourism, and construction fuelingthe way, Cambodia has grown and attracted many foreign investors. However, povertystill affects many parts of the countryside. Cambodia has the 141st highest GDP percapita in the world. Though it imports mostly from Thailand, Vietnam, China, and,Singapore in the Asian region, its biggest export partners are the US and the EU nations.

Laos:As one of the poorest countries in Southeast Asia, Laos relies mostly on agricultureto fuel their landlocked economy.This socialist economy just recently begandecentralizing control of the economy. Laos has the 133st highest GDP per capita in theworld. Its economy is also largely dependent on the natural resources that they export,especially with its biggest trade partners (Thailand, China, and Vietnam) mainly withinthe Southeast Asian region.

Singapore:

Singapore’s market economy is highly developed with industries such asbanking, biotechnology, and energy. Singapore has the 3rd highest GDP per capita in theworld, and it is the richest country in ASEAN. Its economy is mainly dependent onexports, especially with electronics, pharmaceuticals, information technology, andfinancial services. It imports and exports with diverse global markets, but especially inthe Southeast Asian and Asian regions, with its biggest trade partners, Malaysia,Indonesia, China, Japan, and South Korea.

24

What is The ASEAN Economic Community?:

The ASEAN Economic Community (AEC) is one of ASEAN’s goals, as it is oneof the first steps toward

achieving a common market between all member countries. Thiseconomic integration would consist of first implementing programs for free trade (tradeintegration), then free flow ofcapital (investment integration),

and lastly, free flow ofpeople andservice sector

integration.27

ASEAN is currently in the first stages ofestablishing the economic community by creatingAFTA(ASEAN Free Trade Area).

This allows all of the countries within ASEAN to trade goods and services freely betweenthemselves. However,it still has a long way to go as it has low levels of trade integrationand investment integration which are large factors in truly creating an economiccommunity. To improve this, countries in ASEAN must strive to enforce more of auniform tariff,

which establishes one universal tax for all items from other countriesbeing imported into the region within the free trade area.

Free flow of goods through elimination of tariffs and trade barriers, andcoordinating one universal tax on imports from other non-ASEAN nations.This makes standards to trade uniform and easier and more efficient.

○

Free flow of services with elimination of

service trade restrictions. Thisallows the standards at which services are regulated to be the same in allcountries.

○

Free flow of investment with fewer restrictions on industries, allowing fornew industries to be established and maintained without bureaucraticbarriers.

○

Free flow of capital with fewer restrictions on collections of capital ininvestments within ASEAN states. This allows more markets to bedeveloped and maintained.

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Free flow of labor with allowed movement of workers between ASEANcountries. This allows standards to be set for the qualifications workersneed in each country while removing workplace discrimination.

Participate in global markets, supply and demand network, and investmentframeworks for sustainable development

Difficulties

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The governments of the member states are particularly diverse. The freer, moreliberated democracies (Cambodia, Indonesia, Philippines) serve as a large contrastto the communist nations (Laos and Vietnam), the constitutional democracy witha powerful monarchy (Thailand), the more restrictive democracies with onepolitical party dominating the governments (Malaysia and Singapore), the strict,military controlledautocracy

(Myanmar), and thesultanate(BruneiDarussalam).29

Therefore, they all have varying degrees of control over theireconomies, and therefore, there may be differences in their laws regarding trade,making it difficult to create one set of laws for all the differently regulatedeconomies. They would have to compromise and alter some of theirdomesticlaws in order to create one set for the whole region.

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The economies and social structures of the nations are also very different.Countries like Singapore and Brunei Darussalam are among the richest in Asia,while others, like Burma, Cambodia, and

Laos, are among Asia’s poorest. Thereis also a large difference in population sizes. Indonesia is ranked fourth in theworld for its population size, while tiny states like Brunei have less than a millionpeople.30

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ASEAN leaders have avoided creating a strong regional institution like theEuropean Union’s central bank to monitor their bloc’s economy. As a result,ASEAN policies have often been changed and altered by one nation’s decisions toenact certain measures by themselves, which have often resulted in many othernations shifting their policies as well.

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ASEAN’s largest obstacle has been resisting pressures from its neighboring Asianeconomic giants, China and India, which are among the world’s largest, mostpowerful, and fastest growing economies. Oftentimes, their involvement hasinfluenced ASEAN policy, which makes it more difficult to fully establish anindependent economic community.

It would be much easier for businesses in the private sectorand ones owned by the government to conduct business with other member states.With one set of economic laws and tariffs for whole region, there would be nomore trade barriers and no more major

differences between the nations’ economicpolicies in the region.

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MoreForeign Direct Investment (FDI):

More countries would be willing toinvest in nations within ASEAN, especially within the smaller, less prosperousnations, simply because of their ties

to the larger, more developed nations withinthe region. This investment could really stimulate the economy and its growthwithin each of the individual nations, as they would have “strength in numbers.”

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Makes all countries within the region as equal as possible economically:

In aregion as diverse as ASEAN, there are inevitable differences between theirmember states. Burma would be entitled to the same economic benefits as othercountries in the region, such as Singapore, one of the richest nations in Asia.Therefore, help from prosperous nations like Singapore and the blanket policieswould really benefit the economies of the smaller nations and, by extension,ASEAN. With the credibility Singapore has on the global market, it makes othercountries more willing to invest in it and its neighboring ASEAN countriesbecause they are so tied together.

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Diplomatic ties between member states:The economic community would fosteran even larger sense of responsibility and cohesion between the states. By beingso integrated economically, there is little room for conflict, as the countries wouldnot want to antagonize countries they have economic interests and investments in.

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Free flow of labor: This makes it easier to find work within any of the ASEANnations and removes discrimination on employment. People would now be able tofind work more easily, and ASEAN nations would be able to have diverseworkforces.

Options for its future:

Modeling it after the European Union:

The European Union is an economic organization that shares monetary policy,currency, and a central bank. If ASEAN models their economic community on theEuropean Union, it would mean standardizing a singular currency throughout SoutheastAsia, as well as establishing an infrastructure of banks and financial policy that wouldtranscend national boundaries. Each country in the ASEAN so far has a differentcurrency and a different financial situation.

Modeling it after NAFTA:

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NAFTA (The North American Free Trade Agreement) is a three way trade bloc inNorth America between Canada, USA, and Mexico. This agreement entails no barriers totrade and investment between its members, as well as no tariffs. ASEAN can utilize thisform of economic integration to improve regional stability and unity. Countries aremorewilling to help trade partners, so a free trade agreement could help strengthen ASEAN.

Questions to Consider:

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Should the economic community be more market-driven or government-driven?

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Should ASEAN plan to enact one currency and model the bloc afterthe EuropeanUnion, or should they just maintain a free trade zone and model the bloc afterNAFTA?

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Is the creation of an economic community through the establishment of a customunion like the European Union better or is it better in the form of the regionalframeworks that ASEAN has through its regionalism?